On 30 November 2022, Treasury and the IRS published Notice 2022-61, which provides much-awaited guidance on the application of “prevailing wage” and “apprenticeship” requirements relevant to determining the amount of several renewable energy and other clean technology tax credits that were enacted, extended or modified by the Inflation Reduction Act. The guidance provided by the Notice is fairly scant and leaves a number of issues unaddressed. It seems that the issuance of the Notice was rushed in order to start the 60-day period after which taxpayers will need to satisfy the “prevailing wage” and “apprenticeship” requirements, to the extent applicable, to claim the maximum tax benefit for projects (i.e., projects the construction of which begins on or after 29 January 2023).
Connor Mallon is an associate in Baker McKenzie's Global Tax Practice Group in Chicago. Before joining the Firm, Connor was a team lead for the University of Chicago Law School's Kirkland & Ellis Corporate Lab Clinic, where he advised large companies on transactional matters. He also participated in the Law School's Institute of Justice Clinic on Entrepreneurship, where he advised small businesses on regulatory compliance.